Nufarm (ASX:NUF) chair John Gillam told shareholders at the company’s 2026 annual general meeting that the company’s FY25 statutory result was “disappointing,” but said underlying performance—particularly in crop protection—was strong and that management expects improved outcomes in FY26.
The hybrid AGM was held from the company’s corporate support center and manufacturing facility in Laverton, Melbourne, with online participation facilitated through Computershare. Voting on all resolutions was conducted by poll, with the chair noting proxy voting indicated all items were likely to pass with strong support.
FY25 result: statutory loss driven by material items
Excluding those items, Gillam said underlying performance was stronger, highlighting crop protection as a key contributor. The crop protection business delivered an 18% increase in underlying EBITDA, with growth across all regions. He cited:
- North America: a record year for profitability in Turf and Ornamental.
- APAC: a record year of profit in Asia.
- Europe: underlying EBITDA growth of 22%, attributed to the performance improvement program and better industry conditions.
Seed Technologies repositioning and omega-3 pressures
In Seed Technologies, Gillam said the company had a “good year” in its profitable hybrid seeds business, with increased revenue and profitability in South America, which he described as a focus for future growth.
Gillam also discussed progress and challenges in Nufarm’s bioenergy and omega-3 platforms. He said the company increased planted area in carinata as market fundamentals strengthened, pointing to a shortage of feedstock to meet demand created by Europe’s Renewable Energy Directive implementation.
The omega-3 platform, however, was “severely impacted” by a fall in fish oil prices. Gillam said the company took actions to reduce costs and reposition omega-3 production to achieve a lower cost of goods, and that Nufarm expects a “materially improved” outcome from omega-3 in FY26 and beyond.
As part of the review of Seed Technologies, Gillam said the board assessed strategy and evaluated options including a potential sale or bringing in a capital partner. The board ultimately determined that the highest value outcome for shareholders was continued ownership under a reprioritized strategy designed to reduce cash costs and capital demands, prioritize near-term growth in hybrid seeds and technology, and reposition omega-3 over the medium term.
Balance sheet focus, leverage reduction, and no dividend
Gillam said the balance sheet was a major focus in FY25, describing Nufarm’s debt facilities as diversified and flexible, supported by a “covenant-light” structure and staggered maturities. He said net debt increased at the end of FY25 due to factors including spending on key manufacturing assets and a significant increase in omega-3 oil inventory.
He said the company aims to reduce leverage by the end of FY26 through improved working capital management, cash-generative earnings growth, lower capital expenditure, and stronger cost discipline. Gillam also said Nufarm did not declare a dividend for FY25, describing the decision as aligned with capital management principles and the objective to reduce leverage.
In Q&A, CEO Rico Christensen said the company was targeting FY26 capital expenditure of less than AUD 200 million and was tracking toward that figure, while continuing to support operational requirements including safety, stable site operations, product registrations, and R&D activities linked to future growth.
Leadership transition and FY26 priorities
Gillam introduced Rico Christensen as the company’s newly appointed CEO and managing director, succeeding Greg Hunt. He said Christensen’s appointment reflected long-term succession planning and highlighted Christensen’s experience across strategy, operations, sales and marketing, supply chain, P&L management, cash flow, and capital allocation.
Christensen told shareholders his priorities for FY26 include strengthening cost and capital deployment discipline with the goal of generating positive free cash flow to support debt and leverage reduction. He said the company is embedding discipline through refinements to structure, delegations, and incentives.
On the operating outlook, Christensen said Nufarm had made a “positive start” to the year, with improvement in the first quarter, and that the company was reaffirming all elements of the guidance provided at the FY25 result. He described FY26 as promising “strong growth and profitability,” with a focus on free cash flow generation and a “significant reduction in leverage” by year-end.
Christensen also highlighted growth plans within crop protection, citing Nufarm’s Phenoxy portfolio and businesses such as Turf and Ornamental and ANC. He referenced a previously announced collaboration agreement with KingAgroot to develop and launch a new Group 14 herbicide in Australia and New Zealand, targeting regulatory approval and launch by 2028.
Shareholder questions: sustainability, markets, governance, and value
During Q&A, the Australian Shareholders Association asked about carinata market assumptions amid geopolitical turmoil and oil price volatility. Christensen said Nufarm’s partner BP remained satisfied with the agreement and that “DST premiums” had increased since the end of FY25 from $100 per tonne to more than $300 per tonne. He also said fish oil prices had risen over the past three months from about $2,600 per tonne to about $2,900 per tonne, and reiterated the company’s view of a long-term structural gap between supply and demand despite volatility.
On sustainability, director Alexandra Gartmann said Nufarm follows science-based policy regarding environmental topics and pointed to the company’s omega-3 canola as a sustainable alternative to wild fish and krill catch.
KPMG audit partner Vicky Carlson said impairment testing and recoverability of non-current and intangible assets was a key audit matter, describing audit work that included specialists and review of reconciliations between carrying values and market capitalization, and stating KPMG was satisfied the balance sheet was not materially misstated.
One shareholder challenged the board and management on long-term share price performance and lack of dividends. Gillam said the board and senior management were “bitterly disappointed” with the share price and emphasized a “steely determination” to improve performance, citing year-on-year improvements in crop protection and the strength of hybrid seeds, while acknowledging omega-3 as a key area requiring repositioning and commercialization.
About Nufarm (ASX:NUF)
Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific. The company operates through Crop Protection and Seed Technologies segments. The Crop Protection segment solutions include herbicides, insecticides, and fungicides that help growers protect crops against weeds, pests, and diseases. The Seed Technologies segment operates base seeds, bioenergy, omega-3 and seed treatment platforms, as well as sells seeds and oil based products.
